<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET AND STATEMENT OF OPERATIONS OF COMPUTER NETWORK TECHNOLOGY CORPORATION AS OF AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> SEP-30-1998 <CASH> 10,357 <SECURITIES> 1,237 <RECEIVABLES> 30,089 <ALLOWANCES> 1,101 <INVENTORY> 17,242 <CURRENT-ASSETS> 61,701 <PP&E> 40,226 <DEPRECIATION> 25,741 <TOTAL-ASSETS> 87,754 <CURRENT-LIABILITIES> 29,149 <BONDS> 543 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 221 <OTHER-SE> 57,841 <TOTAL-LIABILITY-AND-EQUITY> 87,754 <SALES> 69,906 <TOTAL-REVENUES> 97,642 <CGS> 22,935 <TOTAL-COSTS> 40,607 <OTHER-EXPENSES> 15,905<F1> <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 66 <INCOME-PRETAX> 4,850 <INCOME-TAX> 1,812 <INCOME-CONTINUING> 3,038 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 3,038 <EPS-PRIMARY> .14<F2> <EPS-DILUTED> .14 <FN> <F1>Amount Presented Represents Engineering and Development Expense. <F2>Amount Presented Represents Basic Net Income (Loss) Per Share. </FN>